Newly-led Rotman company acquires Rotman's $5M distribution firm
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Steven Rotman.
An Atlanta rubber latex product manufacturer that recently moved to Worcester has acquired a business entity owned by furniture executive Steve Rotman less than a month after Rotman was named CEO of that Atlanta company.
Vystar Corp. announced Tuesday that it signed a letter of intent to acquire NHS Holdings, LLC., owned by Rotman, for $1.5 million. That price is an 85 percent discount from the entity’s $5 million valuation, Vystar Corp. said.
NHS in 2015 became the exclusive distributor of Vystar’s natural rubber latex foam, Vytex, in the U.S.
Vystar Corp., formerly based in Atlanta, moved to Worcester last month with the announcement Rotman would become the company’s new CEO.
According to Vystar, NHS' largest shareholders are major investors and registered insiders of Vystar, thus subjecting the transaction to insider trading restrictions.
According to Vystar, NHS’s major shareholders include manufacturing and business executives, including Steve and Greg Rotman. The Rotmans, however, are forfeiting 75 percent of their equity in NHS to facilitate the transaction.
In a statement, Steven Rotman called the transaction the logical first acquisition.
Rotman said the company anticipates increased revenue in 2018, as Vystar is looking to partner with manufacturers for of multiple products, including solid latex mattresses, toppers, pillows, and gloves.
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